VirnetX Files Patent Suit Against Microsoft Over Skype

April 22 (Bloomberg) -- VirnetX Holding Corp. which won a
$200 million settlement from Microsoft Corp. over patents
related to private networks in 2010, filed a new lawsuit today
claiming it’s entitled to more money.

VirnetX said Microsoft’s Skype unit, which allows instant
messaging and Internet calling, is infringing six patents.
Skype, which Microsoft bought in October 2011 for $8.5 billion,
wasn’t part of that earlier deal, Zephyr Cove, Nevada-based
VirnetX said in a statement today.

“Although Microsoft previously signed a patent license
with VirnetX, we believe they are infringing our patents in ways
that are outside the scope of the original license,” Kendall
Larsen, the company’s chief executive officer, said in the
statement. “We look forward to quickly resolving this matter.”

The complaint was filed in federal court in Tyler, Texas,
where VirnetX has had mixed luck. One jury in November awarded
VirnetX $368 million in a case against Apple Inc. over some of
the same patents, while a different jury in March decided that
Cisco Systems Inc. didn’t infringe the patents.

Redmond, Washington-based Microsoft and VirnetX reached the
earlier settlement after Microsoft lost a jury verdict against
VirnetX.

“Every successful technology company sees patent suits
from time to time,” said David Cuddy, a Microsoft spokesman.
“We’re confident in our handling of intellectual property and
look forward to addressing these claims.”

Patent Licensing

VirnetX, which relies on patent licensing for its income,
reported $412,000 in revenue last year. The company, whose
shares rise and fall with its litigation, rose 74 cents or 3.9
percent, to $19.55 in New York trading. Its shares are down 33
percent this year.

Microsoft, the world’s largest software maker, reported
$73.7 billion in sales in the last fiscal year. Microsoft rose
3.6 percent to $30.83. Its stock is up 15 percent this year.

The new case is VirnetX Inc. v. Microsoft Corp., 13-351,
U.S. District Court for the Eastern District of Texas (Tyler).